What Is a New Jersey Home Improvement Contractor Compliance Bond? 

A New Jersey home improvement and home elevation contractor business bond is a type of contract surety bond required for statewide licensing with the Division of Consumer Affairs. It is a form of financial security that ensures contractors adhere to state licensing laws and protects clients from harm due to misconduct or faulty work.

How Much Bond Coverage Do I Need?

Under N.J.S.A. 56:8-142, your required bond coverage is based on the value of contracted home improvement or home elevation work for the year or for a specific project. 

• $10,000 Bond: Single contracts under $10,000 or yearly contracts totaling less than $150,000
• $25,000 Bond: Single contracts between $10,000 and $120,000 or yearly contracts totaling $150,000–$750,000
• $50,000 Bond: Single contracts over $120,000 or yearly contracts totaling more than $750,000

How Much Do Home Improvement and Home Elevation Contractor Bonds Cost?

New Jersey home improvement contractor compliance bonds start at a rate of 1% for applicants with strong credit: 

• $10,000 Bond: Starts at $100 
• $25,000 Bond: Starts at $250
• $50,000 Bond: Starts at $500

Exact rates vary depending on financial qualifications. The premium will be rounded based on your term start and end dates. Select a multi-year term at checkout to save 25% and time on renewals. 

How Does a New Jersey Home Improvement Bond Work? 

These bonds create a legally-binding contract between three parties: 

1. Principal: The contractor purchasing the bond
2. Obligee: The New Jersey Division of Consumer Affairs requiring the bond 
3. Surety: The provider issuing the bond

By purchasing this bond, you promise to uphold the terms to the Division. This includes following all regulations under the Home Improvement and Home Elevation Contractor Licensing Act.

If a client, the obligee, or the public is harmed by the principal’s actions, they can file a claim on the bond for reimbursement. The surety provider backs the financial liability of the bond to repay those claims.

Who Needs a Home Improvement and Home Elevation Contractor Businesses Bond? 

In 2024, new legislation P.L. 2023, c. 237 was signed — amending CBRA and creating stricter regulations for home improvement contractors in the state.  

Now, all contractors must provide one of the following forms of financial security: 

• A compliance surety bond
• An irrevocable letter of credit
• Other acceptable securities

This is mandatory to obtain, renew or reinstate contractor registrations. Learn more about the pros and cons of surety bonds vs. letters of credit here. 

If you do other types of construction work, visit our New Jersey Contractor License Bond Guide to see all bond requirements in the state. 

How Do I Get a New Jersey Home Improvement and Home Elevation Contractor Bond? 

SuretyBonds.com provides the fastest and easiest way to get home improvement contractor compliance bonds. Follow these simple steps:

1. Apply Online: Enter your information to get a same-day quote
2. Pay Invoice: Complete your purchase online or over the phone
3. Receive Bond: Receive your official bond documentation via email

Upon receipt, file the official bond documentation with the Division of Consumer Affairs – Department of Law & Public Safety. 

Can I Get Bonded With Bad Credit?

You may still be able to get bonded with bad credit. However, poor credit may increase your New Jersey contractor bond premium rate. 

Submit an online application today or call 1 (800) 308-4358 to speak with a surety expert and determine if you qualify. Or, visit our Surety Bond Cost FAQ page to see how credit may impact your cost. 

How to Renew Your Home Improvement Compliance Bond

New Jersey home improvement contractor bonds require annual renewal unless you opt in to a multi-year term. When you work with SuretyBonds.com, we’ll send you reminders and a renewal invoice before your bond expires. 

Once you pay for your renewal premium, we’ll issue a continuation certificate to keep your bond active for another term. File this with the obligee as instructed. 

How to Become a Home Improvement Contractor in New Jersey 

You can become a home improvement or home elevation contractor by applying for a license with the New Jersey Division of Consumer Affairs. Complete the following application steps:

1. Training: Complete an approved training program
2. Exam: Pass the state licensing exam 
3. Liability Insurance: Purchase general liability insurance for at least $500,000 per occurrence for home improvement work or $1,000,000 per occurrence for home improvement services
4. Worker’s Comp: Obtain worker’s compensation insurance (if necessary)
5. Bond: Submit your compliance bond or alternative financial security in the required amount   
6. Fee: Pay the $110 application fee via check or money order 
7. Application: Complete and mail the application form with company formation documents and proof of insurance attached to the address below

Division of Consumer Affairs

Regulated Business Section - Home Improvement Contractor Business Unit

124 Halsey Street, 7th Floor

P.O. Box 46016

Newark, NJ 07101

Learn more about the recent licensing changes in our Guide to New Jersey’s Updated Home Improvement Contractor Laws.